When Bangladeshi delegates speak at the UN Climate Change Conference, their voices echo a narrative of profound deprivation and moral injustice. This is the language of an innocent victim, a nation that is at the forefront of the extreme disasters of climate change despite contributing only a small percentage of global carbon emissions. The basis for this argument is very strong; despite being responsible for only 0.3 percent of global greenhouse gas emissions, Bangladesh ranks ninth among countries at risk of extreme weather in the 2024 Global Risk Index. This global injustice is as clear as daylight, and the record of its humanitarian catastrophe is also very long. However, parallel to this well-known narrative, another backstory is being written within the country. That is, the story of capitalizing on climate catastrophe for profit. In this dark time of disaster, while ordinary people are becoming destitute, a group of beneficiaries are turning this crisis into a profitable business.
This process can be easily identified as 'climate capitalism'. It is essentially a strange intersection of environmental crisis and market systems, where the suffering of the masses creates opportunities for private profit. This is not a well-organized conspiracy, but rather the traditional instinct of capitalism-where any crisis paves the way for the creation of a new market, new products, and new customers. In contemporary Bangladesh, unbearable heat waves, devastating floods, or the growing energy crisis are no longer limited to natural disasters; they are an emerging business area for big capital. The harsh truth is still ignored in our national and policy-making discussions about who is getting rich in this artificial economy created by climate change and who is paying the ultimate price by risking their lives.
Bangladesh's current heat crisis is not a temporary seasonal problem, but rather a permanent structural crisis. Statistics show that although the country's average temperature has increased by 1.1 degrees Celsius since 1980, the perceived temperature has increased by about 4.5 degrees Celsius due to humidity and other factors. Bangladesh is now the second most exposed country to high temperatures in the world. In particular, the heat index in Dhaka city is about 65 percent higher than the national average. The prolonged heat wave that swept across the country in 2024 was a record-breaking one. The economic impact of this heat is far-reaching. Last year alone, about 250 million working days were lost in the country due to heat-related illnesses, with an economic loss of about $1.78 billion-about 0.4 percent of our total GDP. For working people like rickshaw pullers, construction workers, hawkers, and garment workers, this heat is not just uncomfortable, but a direct blow to their lives and livelihoods.
Yet this unbearable heat has brought a spring of growth for a certain part of the country's economy. Since 2021, there has been an unprecedented surge in the air conditioning (AC) market in Bangladesh. Its annual sales have almost doubled by 2024. The summers, which have become hotter due to climate change, have now turned the luxury AC into an essential product. The market system is playing a double role here; it allows those who can afford to stay cool in exchange for profits, and imposes the punishment of uncontrolled heat on those who cannot. Only two to three percent of households in the country can use AC, which means that a huge population-whose labor keeps large buildings cool-does not even get a fan or a little shade. The same climate crisis that is making record profits in the pockets of electronics traders is bringing physical exhaustion and extreme income inequality to ordinary workers.
The 2024 floods were one of the most devastating in recent history, affecting 18.4 million people. The floods not only destroyed homes but also displaced millions of people from their homes. In a country like Bangladesh, where there is little state housing or legal protection for the poor, displacement has become a market-based commodity. Every year, about 500,000 people migrate from coastal areas to Dhaka in search of their fortunes. A large proportion of them are climate refugees. About 70 percent of people living in Dhaka's slums have taken refuge here after experiencing some form of environmental disaster. The World Bank estimates that by 2050, about 20 million people in Bangladesh could be internally displaced due to climate change.
Each wave of climate refugees arriving in Dhaka puts enormous pressure on the city's housing market. Since demand is unlimited but supply is limited, rents in informal settlements or slums skyrocket. These destitute people, who have come to escape the erosion of the Yamuna River or the saltwater of the coast, are trapped in a market where they have no bargaining power as soon as they set foot in the city. Their increased costs are not recorded in any international climate fund. Urban landowners are exploiting this increased demand to increase their wealth, while low-income people are forced to spend a large part of their income to live in unhealthy conditions. The lack of legal recognition of these displaced populations makes them targets for exploitation by influential and corrupt local officials.
Bangladesh is trying to set a shining example in the world in terms of climate finance. The country needs about 3 percent of its GDP, or $12.5 billion, every year to address the growing risks. The government is serious about raising this money and is working with various international organizations. However, the main problem lies in gender and class disparities.
The current climate finance framework is mainly biased towards 'bankable' or profitable projects, which do not directly benefit marginalized people. The garment industry's 'green transformation' or green factory is a good example of this. Under pressure from international buyers, Bangladeshi garment sector owners are investing heavily in installing solar panels or constructing LEED-certified buildings.
In return, the owners are getting loans on easy terms, government incentives and special benefits in the global market. But there has been no visible change in the quality of life of the 4.4 million workers who are the lifeblood of this industry. Although there are environmentally friendly measures inside the factories, there is no climate resilience in the workers' transportation or housing system.
The same disparity is observed in the broader context of the green economy. Green bonds or renewable energy projects mainly benefit large corporations. These financial innovations do not reach farmers whose land is being submerged by salinity or workers who are working in the sun. A World Bank report says that families in South Asia are bearing 80 percent of the costs of adapting to climate change from their own savings, without state support. This means that the poor are quietly financing their own adaptations-they are selling their shacks to build houses on higher ground or moving to the cities when crops fail. There is no institutional recognition, no financial compensation, for these enormous sacrifices.
Another dark side of climate capitalism is the increasing rate of domestic carbon emissions. While Bangladesh presents itself as a victim in the global court, a privileged class within the country is rapidly increasing emissions. The share of imported fossil fuels in the country's total energy supply has increased significantly in the last few years, while the contribution of renewable energy is still negligible. This fuel mainly meets the needs of industries, the luxurious lifestyle of the upper class, and the commercial sector. However, it has a negative impact on those people who do not contribute to these emissions by riding rickshaws or working in the open air. Whenever there is an adverse impact on the environment, these low-income people are the ones who have to stand in the front line and sacrifice their lives.
Real climate justice cannot be limited to demanding money in international forums. It requires a radical change in domestic policies. Justice will only be achieved when the impact of temperature and productivity losses are taken into account when setting minimum wages for workers. Climate refugees need not just relief, but also secure housing and property rights in cities. Conditional financing is needed so that the benefits of green industrialization are reflected not only in the owners, but also in the health and livelihoods of workers. We need to recognize nationally that the real warriors of climate change are the farmers on the coast or the slum dwellers in the cities, who are making the most sacrifices for the least benefits.
Bangladesh's strong demand on the world stage about climate injustice is undoubtedly commendable.
But now it is time to look inward. It is important to speak with equal transparency about the expansion of capitalism in the name of climate change and the new walls of inequality being built within the country. If this culture of profiteering by capitalizing on disasters is not stopped, climate adaptation will only make one class richer, and push the common people into an endless darkness. True sustainable development will be possible only when our strategies for dealing with disasters are people-centered, not profit-centered.
Author: Researcher and development professional
